Beginning the journey of wholesaling

7 Replies

I'm 28 years old looking to get into real estate. I figured I could start by doing wholesaling, eventually getting into buy to hold. I live in a small town outside of chattanooga tn so that would be my main place and do some outside of there as well. My questions are would you need a license of some sort for this, if not do you just start by finding a property with a motivated seller and contact them and begin negotiations? It seems simple but complex at the same time. I work in chattanooga as a Journeyman electrician and want to get into this. I just dont know exactly how to begin. Any and all advice would be awesome thank you.

'Do you need a license?'.  It depends on who you ask.  Although, I'm sure that there is a definitive answer to that in your state.  Check with a lawyer on that one.  Still, even if it's illegal I'm pretty sure that there are many wholesalers without a license.  

The next step is to find a motivated seller.  Of course, some will say that the next step is to build your buyers list.  Both are probably correct.  Pick one and go for it.................Good luck!

Hey Colton, I was in the same place about 4 months ago and yep the biggest thing is to start finding leads and a great way to start that process is driving for dollars. It gets you super familiar with your area, creates cheap leads, and can be repeate. Think its a great way to start off. 

Would you be able to find a local real estate investors club in your area? That is where you will likely be asking these questions in the context of your area. If you do go the path of talking to a lawyer about it, try to find one that is familiar with the investing side of things. A lot of agents and lawyers are not familiar with wholesaling or see it as a  grey area which is why I recommend finding local meet ups. Start watching the free webinars offered on BP.. they may be about different subjects but the lead funnels work the same way across strategies. Learn your numbers. Also.. with any luck, local meetings will have people doing actual investing around the area and hopefully can give you documents that have been used in that area, or if you notice there are no active meetings around you, you could always start one and see who it attracts.

There are a fair amount of people spending a decent amount of money monthly, to market for properties in Chatt. The main thing is to not lose focus. I use to run the REIA here in town (been 3+ years now) and we would get a lot of newbies who we would see for a few months. They'd get frustrated not finding anything worthwhile their first few go rounds and disappear.

You need to decide what marketing methods you want to employ given time and financial constraints. Once you've made the initial decision stick to it for awhile but don't be afraid to change what's not working. Wholesaling, flipping, etc., all of it really are about endurance mostly. The REIA here in town has changed somewhat in the last few years, but there's still networking opportunities there and there's a BP meetup here in town the fourth Thursday of each month, I think.

Roland yessir isn't a broker considered the same thing pretty much?from what I have read about them they get licensed I just want to do it the right way not the get in trouble way. Brian I have a little list of names for people that buy houses and iv drove around and looked at places. As far as marketing do you mean just advertising that I can help sell your house? What would be a correct way of wording that so it doesn't sound like a novice is going to treat you like dirt. I understand the contract part (almost all of it). I'm eager to go out and grind and make that first deal just have a few more things to feel comfortable about before doing so.